Temporary Closure of the PRN Market – Significant Impact for Packaging Waste Reprocessors and Exporters from the New Digital pEPR Packaging Service

As a result of an update from Defra about the new digital pEPR packaging service on 22 December 2025 there is, in effect, a temporary closure of the PRN Market, with significant impact on packaging waste reprocessors and exporters.

The new UK pEPR packaging service digital system for registration and accreditation of reprocessors and exporters, which includes functionality to register recycled material and issue PRN/PERNs, should’ve been in place from 1 January 2026. The previous system, the National Packaging Waste Database (NPWD), ceased operating from 31 December 2025.

However, the communication on 22 December stated there will not be functionality on the service to issue PRNs/PERNs in January.

This is at a time when the widely reported UK and European plastic recycling market challenges are ongoing and there is additional regulatory requirements and changes, this is causing uncertainly as to when PRN/PERNs can be issued and impacting cashflow, particularly for small operators who rely on income from PRNs/PERNs.

The details are outlined below. We are aware the implications of this have been raised with Defra from multiple sources, including ourselves, and as of 8 January there has been no response.

Accessing the New Digital Service

The Defra communication stated: “As from January 2026, reprocessors and exporters who have applied for 2026 registrations and accreditations and received granted determinations from regulator(s), will start to receive invites to the new digital service. Invites will be sent from the Defra mailbox (ReportPackagingWaste-NoReply@defra.gov.uk) to the Approved Person and nominated registration contacts provided in your registration and accreditation applications. These invites will be released on a staggered basis over a period of weeks and will start with accredited operators who have received their granted determinations from their regulator(s).”

It has been pointed out by Paul Sanderson at the Recycling Association that the Environment Agency has breached its 12-week legally required deadline for determining applications. These weren’t completed by 1 January and no deadline given when the invites will be completed.

Packaging Recycling Notes (PRNs) and Packaging Export Recycling Notes (PERNs) during January 2026

The communication also stated: “There will not be functionality on the service to issue PRNs/PERNs in January. Contracts, sales and payments for PRNs & PERNs will remain outside of the digital system and operators can enter into agreements to contract sales before the PRN/PERN digital functionality is in place. From February 2026, you will be able to issue these on the digital service, based on the data you have recorded in your summary log.”

It looks like 22 December was the first time it was communicated there would be no functionality to issue or gain revenue from PRNs / PERNs in January, with a gap and potential ‘shadow market’ existing before normal service resumes.

It is assumed but not 100% confirmed the new system will be operational on 1 February 2026.